|
Are You Neglecting 70% to 90% of Your Internet Profits
At the very beginning of this article, I want to tell you about a horrible
mistake I have been making lately. I have been neglecting the place where 70% -
90% of most Internet profits come from.
I would normally keep a mistake like this to myself, but I also recognize
that probably 9 out of every 10 of my readers are making the exact same mistake.
This just shouldn't be happening.
My business is extremely profitable, but by neglecting this one technique I
have been ignoring tens of thousands of dollars in additional profits.
The direct marketing rule that I been neglecting to give attention to lately
is that of backend selling. I know and have taught backend selling to thousands
of Internet businesses, but in the past 6 months of my own business I have been
letting it slide.
For my business this means that I am ignoring additional profit centers. For
many Internet businesses which aren't as profitable as mine this one mistake
could easily spell the death of their entire endeavor.
To give you a quick idea of just how profitable backend selling can be for
your business, let's give the following example.
Let's say you are in an information business selling a low cost audio tape
set and a larger video package. The first product you have sells for $50.00 (and
costs $25.00 for drop shipping from the owner) while your second package sells
for $300.00 (and costs $150.00 drop shipping from the owner).
If the first product you sell to customers sells for $50.00 and costs you
$25.00 to fulfill, you have $25.00 potential earnings from it where you have to
pay advertising expenses from. If it costs you on average $20.00 advertising
expense for each new customer, you would only be earning a $5.00 profit on every
new customer.
What would happen if you included a sales letter for your $300.00 course in
every $50.00 package people bought?
If 1 out of every 5 customers you brought in on the first product would also
buy your second product for $300.00, you would be earning an extra $150.00 off
of every 5 customers. Your front end profits would have been $25.00 for these 5
customers and your backend profits would have been $150.00 without spending more
than a couple of cents extra for the sales letter included in the packages.
You would only be earning $25.00 a day in your startup Internet business is
you were selling 5 packages a day. Once you add in your backend product, your
profits jump up to $175.00 a day!
For many businesses, having a backend product determines whether your
business succeeds or not. You must have a specific backend in mind whenever you
are planning your web site, choosing a product, or designing a product.
On the Internet, it is so easy to come up with backend products! If you don't
own any additional products or services to place on a backend, then you can
simply join an affiliate program with a high quality product or find a business
owner who will drop ship products for you.
There are thousands of companies out there which have affiliate programs or
who drop ship for you. All you have to do is search for "drop
shipping" or "affiliate" and thousands upon thousands of sites
will come up.
If you see someone who has a product you would like to sell, see if they will
set up a drop shipping program just for you. This type would often end up being
the most profitable for you since you wouldn't be competing with thousands of
other affiliates.
The key to backend profits in your business is to actually start doing
something. So, I have included 4 easy ways your Internet business can start
profiting from backend selling today!
4 Ways ANY Internet Business Can Easily Start Making Backend Sales
Immediately...
1. Point of Purchase
The absolute best point for a backend offer on any sale is right after the
initial sale while the customer still has their credit card out. For example,
whenever I go buy a pair of shoes it always seems like once you have the shoes
picked out the salesperson will then ask you if you would like laces, polish,
etc.
If you go buy a suit, then they ask if you would like dress shirts, ties,
etc. Any smart retailer will figure out what other products they have that
naturally go with the purchases most often being made. Then, they will offer an
up-sell immediately at the point of sale.
How can you apply this to your Internet business? The easiest method and the
most profitable is to offer the up-sell right after your customer has made their
purchase and still has their credit card out. In other words, put the additional
product or products on the thank you page right after the purchase is made
through your secure order forms.
At that point, your customer has their credit card out and is in a buying
mood. By listing one to three similar products on this page, you should be able
to increase your overall sales by 10% - 30% immediately.
2. With Product Delivery
The second key time to send a backend offer is when the products are shipped.
Wise marketers throw in a catalog of other products and services they offer with
every order.
Possibly offer a 30 day special coupon in the package. If they order
something else from you within thirty days they get $10.00 off or 10% off or
something similar to this. Just remember that there has to be some incentive to
ordering now.
If you have someone else fulfilling the order for you by drop shipping out
the products, then just send out your own thank you letter with the backend
offer enclosed.
3. Follow-up
You should send out follow-up sales letters to all of your current customers.
Top direct marketers report that it is 7 times as easy to sell to an existing
customer than it is to develop a new one. Put the odds to work for you instead
of against you and start selling more to your current customers.
The correct time to send out this letter depends on what you sell. If you
sell a consumable product such as food, nutritional, body care, etc., then you
send out the letter whenever the average customer will run out of the current
supply.
If you sell other types of products, then the correct time will often be
around every 3 months. Newsletter publishers will often advertise a new product
in each new issue of the publication that goes out. It all depends on your
products and your customers. Learn the correct time frame for sending out
letters based on testing.
4. Leads that Don't Buy From You.
Here is an area that most Internet marketers don't even consider, but it
could quickly become a new profit center for your business. What do you do with
those leads who contact you but don't end up buying?
In most businesses, they just throw them away. The smart marketer who wants
to get maximum profit out of every second of their time and out of every dollar
they spend will put these leads to use also.
They are obviously interested in what you are selling since something you had
caused them to originally contact you for more information. They didn't want to
buy your product, but what if you offer another similar product or service to
them instead once you have finished your regular follow-up system for your main
product.
This is definitely an area that you need to start testing out. You could also
try working with another marketer who sells a similar product and work out a
lead trade. You will offer your product to his leads that weren't sold and he
will offer his to your leads you couldn't sell. Since the cost of follow-up
online is virtually nothing, this type of additional profit center is definitely
something every business should look into.
The question I am going to ask you is, "Are You Going to Leave 70% - 90%
Of Your Profits Behind?"
Above are four simple techniques you can use to start making more profits out
of your online business. What are you going to do about it? Are you going to at
least start trying out a couple of these techniques in your business...or are
you satisfied with what you are making right now when there is so much more
available?
|